Facebook, MyLife, and 500Friends
By Julia Tsai, Associate Editor,
At AlwaysOn Silicon Valley Innovation
Summit, Facebook's woe of its inability to monetize and transition to the more mobile environment was extensively discussed.
The panelists included Bill Cleary, Michael Moe of GSV Asset Management, Dan Madden of
Spruce Media, Greg Brogger of Sharepoint, and Paul Deninger of Evercore Partners.
Here are some interesting points made by the panelists:
Bill Cleary: Procter and Gamble is using Facebook for customer engagement.
Michael Moe is bullish on FB: Bet on gravity, how much time people are spending on site.
Paul Deninger is bearish on FB: Artists are not making money on selling records, they are making money on tours.
Dan Madden: FB's data is precise, so target is focused. Amazon, P&G, Coke all see value in this
kind of precise targeting.
Q: Can FB change ad and transform ad?
Moe: How do you do for an encore? FB network. VCs are trying to find another company to upset FB.
There are other insights offered by MyLife's CEO Jeff Tinsley and 500Friends' CEO Justin Yoshimura.
Justin made several insightful obervations:
1. LTV (Life Time Value): He has been exploring customer
loyalty program which has been evolving for 10 years. It has now reached traction. High life time value is the key to Walmart and Amazon's success. New customer acquisition cost is high and margin is low. Most retailers
don't know how to do that to get them to keep on coming back.
500Friends figured out how to take social data, personalize, social platform service and increase social loyalty.
They will be launching loyalty
program in a few weeks. It will predict LTV or how valuable a customer is. A person of influence gets special treatment. Retailer reward influencers.
They were asked "if you were Mark Zuckerberger, what would you invest?"
Jeff: He needs to explore business model. He should sell business access to use API. Right now the businesses are getting FB pages
for free. Many businesses are engaging their customers on FB and FB is not getting anything in return.
They should charge business once the API utilization reaches certain level. There is not much risk on this. The
market will tell you how much you can charge and how much they are willing to pay.
Justin: Like Zynga, FB is having hard time to monetize on mobile.
Q: How do you see your company in 5 years?
Bigger vision. Get users to get more value. Give people better, clearer advices about their home life, career, finance, etc. to have a material impact on their lives. Have everything in one place so that you can
discover new connections.
Justin: To be the biggest thorn on Amazon's side. Amazon is like Microsoft or US government. They are hard to topple these companies. I want to give retailers tools to be more competitive
with Amazon so that they can grow.
About The Author
Julia Tsai is the Associate Editor of the Internet Journal http://www.intnetjournal.com. Internet Journal provides the insights and analysis on Internet marketing, eCommerce, mobile communications, eSecurity, and global e-Business. If you have any
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